Investors Cautious ahead of Alcoa's Quarterly Report
July 8th, 2009 by Lawrence Grasso
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 8163.6 | -161.27 | -1.9% |
| NASDAQ | 1746.17 | -41.23 | -2.3% |
| S P 500 | 881.03 | -17.69 | -2.0% |
| FTSE 100 | 4187 | -7.91 | -0.2% |
| Nikkei 225 | 9647.79 | -33.08 | -0.3% |
| US Bond 10 Yr | 3.4545 | -0.0527 | -1.5% |
| US Bond 30 Yr | 4.3072 | -0.0526 | -1.2% |
| COMEX Gold - Aug 09 | 929.1 | 4.8 | 0.5% |
| COMEX Silver - Jul 09 | 13.22 | -0.018 | -0.1% |
| COMEX Copper - Jul 09 | 222.55 | -3.7 | -1.6% |
| WTI Spot | 62.88 | -1.18 | -1.8% |
| Aluminium | 1610 | 51 | 3.3% |
| Copper | 5012 | 153 | 3.1% |
| Lead | 1714.5 | 61.5 | 3.7% |
| Nickel | 16070 | 690 | 4.5% |
| Tin | 14450 | 150 | 1.0% |
| Zinc | 1569 | 72 | 4.8% |
The Dow Jones Industrial Average fell 161.27 points, or 1.94%, to 8,163.60. Stocks fell as commodities took a further dip with oil giant Exxon Mobil declining on the session. Crude oil fell to a six-week low on speculation that a government report will show U.S. fuel supplies gained as the recession cut demand. Furthermore, investors are being cautious ahead of Alcoa's quarterly report Wednesday, which marks the official beginning of earnings season.
Today on the Australian Market be prepared for a further slide on the commodities front as a follow through from the U.S markets. It will be important for the XJO to hold on to 3700 as a support level. XJO could be down anywhere form 60-80 points.
BHP
BHP looks like it will find support at $31 and hopefully bounce nicely off it today. We recommend buying the stock under the $32 mark as it won’t hang around here for long.
OIL
Spot oil has pulled back to around $62.88 barrel from its high of $73.18 back on the 11/06/09 but don’t hold your breath as it has a little more to give back. Look for support at $60. Oil based stocks like WPL and OSH would be a great add for portfolios once oil hits our target of around $60.
NUF
Nufarm Limited (NUF) is an international agrichemical company involved in the
registration, manufacture, marketing and sale of branded, off-patent crop
protection products. Keep an eye on the stock for a potential takeover target by Chinese chemical manufacturer Sinochem following profit downgrade on the stock two weeks back. Nufarm maybe an opportunistic acquisition for China.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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